Singapore launches AI support measures and tax breaks in 2026 Budget

Singapore's 2026 Budget announced a package of AI measures, including a national AI council chaired by Prime Minister Lawrence Wong, a 'Champions of AI' programme, and expanded Enterprise Innovation Scheme tax deductions for AI spending capped at S$50,000 per year for 2027–28.

Singapore's 2026 Budget announced a set of measures to support the adoption and development of artificial intelligence across the economy. Prime Minister Lawrence Wong said the state will launch a national AI council, which he will chair, and set clearer rules for how AI is developed and used. The Budget introduced programmes aimed at helping firms transform with AI and helping workers access AI-related training. Officials framed these steps as part of a broader effort to sustain the country's business environment ranking. Key details: - A national AI council will be launched and chaired by Prime Minister Lawrence Wong, and the government said it will define rules to ensure AI benefits society safely and responsibly. - A "Champions of AI" programme will offer tailored support to firms that want to use AI for enterprise transformation and workforce training. - The Enterprise Innovation Scheme, which provides a 400% tax deduction on qualifying expenditures, will be expanded to include qualifying AI expenditures, capped at S$50,000 per year for 2027 and 2028. - The SkillsFuture website will be redesigned to make AI learning pathways clearer and easier to access; SkillsFuture provides learning opportunities and credits for Singaporeans starting at age 25. - Singapore topped the Economist Intelligence Unit's business environment ranking, as noted in reporting on the Budget. Summary: The announced measures are intended to encourage businesses to adopt AI and to broaden access to AI training for workers. Next steps include launching the national AI council, rolling out the Champions of AI programme, redesigning the SkillsFuture site, and implementing the expanded tax deduction for AI expenditures in 2027 and 2028.